Current trend
Last week the pair was trading within the range 1.3293-1.3415 while volatility in the pair was low. Fed Chair Janet Yellen commentaries last week raised the chances of an interest rate increase in December despite mixed data from the US. Initial Jobless Claims came out at 269 thousands that was 1 thousand above forecasted figure, while the ISM Non-Manufacturing PMI fell to 55.9 points. Factory Orders, on the other hand, grew by 1.4%. At the same time, the GDP growth and Unemployment Rate in Canada came out worse than forecasts.
Tomorrow attention needs to be paid to data on Housing Starts and Building Permits in Canada.
Support and resistance
On the daily chart, the pair is trading between the upper and middle MA of Bollinger Bands. Moving averages with 50, 100 and 144 periods are below the price and directed up indicating an upward trend in the pair. MACD histogram is in the positive zone and its volumes are stable.
Support levels: 1.3325 (middle MA of Bollinger Bands), 1.3293 (last week low), 1.3280 (MA50).
Resistance levels: 1.3398 (upper MA of Bollinger Bands), 1.3415 (last week high).
Trading tips
Long positions can be opened after the price consolidation above the level of 1.3398 with the target at 1.3455 and stop-loss at 1.3385.
Short positions can be opened from the level of 1.3359 with the target at 1.3325 and stop-loss at 1.3398.